Encana (ECA) closed at $4.76 in the latest trading session, marking a +1.71% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.22%.
Heading into today, shares of the energy company had gained 13.04% over the past month, outpacing the Oils-Energy sector's gain of 3.92% and the S&P 500's gain of 4.58% in that time.
ECA will be looking to display strength as it nears its next earnings release. On that day, ECA is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 6.86%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 38.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.60 per share and revenue of $6.49 billion, which would represent changes of -30.36% and +9.31%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ECA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.7% higher. ECA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ECA is currently trading at a Forward P/E ratio of 7.81. This represents a discount compared to its industry's average Forward P/E of 8.77.
It is also worth noting that ECA currently has a PEG ratio of 1.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ECA's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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